Answer:
4.86%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ original investment
where,
Average Accounting Income is
= Annual Cash Inflow – Depreciation
= $8,000 - $6,300
= $1,700
The Depreciation is
= ($35000 - $,3500) ÷ 5 years
= $6,300
And, the original investment is $35,000
So, the accounting rate of return is
= $1,700 ÷ $35,000
= 4.86%
We simply applied the above formula
<u>Symbols (which include greenback and </u><u>percentage </u><u>signs) </u>error the following sentence consists of the business's desire to hire greater Spanish-speaking employees to control the new area.
A business is described as a company or enterprising entity engaged in business, business, or professional activities. companies can be for-income entities or non-earnings groups. enterprise types range from restricted liability corporations to sole proprietorships, corporations, and partnerships.
The maximum not unusual types of enterprise are the only proprietorship, partnership, enterprise, and S agency. A restricted liability organization (LLC) is a business structure allowed with the aid of state statutes. felony and tax considerations input into choosing an enterprise structure.
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Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
A unique approach known as the capital asset pricing model or CAPM is employed in finance to determine the correlation between the risk of investing in a particular share and expected dividends. The expected returns for security are calculated using the CAPM model.
<h3>CAPM model</h3>
Required rate of return = Risk-free return + Beta (Market return - Risk-free return)
Required rate of return = 2.2% + 1.12 (11% - 2.2%)
Required rate of return = 12.05%
Hence, the correct option is D (12.05%).
The risk-free rate is the rate of return offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free rate is.
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Answer:
option. C. $50
Explanation:
Your loss is limited to $50 if you notify your financial institution within two business days after learning of the theft.
